John Is an Agent for Peabody

question 37

Multiple Choice

John is an agent for Peabody. John tells Wanda (a third party) of Peabody's existence, but not its identity, therefore John is an agent for a(n) ______ principal. If John signs a contract with Wanda on behalf of Peabody, John is ______ on the contract.

• A) undisclosed, personally liable.
• B) partially disclosed, not personally liable.
• C) partially disclosed, personally liable.
• D) undisclosed, not personally liable.

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Definitions:

Marginalism

An economic principle that deals with the additional or marginal changes in costs and benefits for a unit increase or decrease in production or consumption.

Scarce Resources

Natural or human-made assets that have limited availability, which makes the allocation of these resources a fundamental economic challenge due to competing needs and desires.

Additional Costs

Expenses that are not initially projected or expected in the budget.

Natural Science

The branch of science that deals with the physical world, including physics, chemistry, geology, and biology.